"But let's say in ten years time what we traditionally call 'console games' simply won't exist," Wada told Develop. "The exact timing at which it will go away is hard to determine, but somewhere around 2005 the console manufacturers' strategy shifted."

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In the past, he continues, the platform was hardware, but now it is network. "So a time will come when the hardware isn't even needed any more."

But won't this hurt game companies and platform holders? "First of all the distributors and sales firms will see a big negative impact," said Wada. "But as I say the format holders knew that this shift was coming."

Square Enix is currently branching out to focus on PC browser games, which Wada sees as potentially big market especially in Asia.